Core Viewpoint - The article discusses common mistakes investors make during market highs and emphasizes the importance of focusing on business fundamentals, maintaining a diversified portfolio, and adhering to a disciplined investment strategy to avoid costly errors. Group 1: Mistake 1 - Chasing Momentum - Investors often rush to buy stocks that are experiencing rapid price increases, driven by speculative trading rather than solid fundamentals, which can lead to significant losses when momentum reverses [2][3] - An example is Seatrium Ltd, which reached a 52-week high of S$2.60 in February 2025 but fell to a low of S$1.62 by April 2025, illustrating the risks of buying at peak prices [3][4] Group 2: Mistake 2 - Overconcentrating on "Winners" - Concentrating too much investment in a single stock or sector can be risky, as even strong performers can decline sharply, leading to panic selling [5][6] - DBS Group Holdings Ltd saw its share price drop to a 52-week low of S$36.30 on April 7, 2025, a decline of over S$10 from the previous week, highlighting the dangers of overexposure [6][7] Group 3: Mistake 3 - Ignoring Valuations - Investors may overpay for quality companies during high enthusiasm, leading to disappointing returns if the companies cannot sustain their growth [8][9] - It is crucial to balance quality with price by analyzing metrics like price-to-earnings (P/E) and price-to-book (P/B) ratios to ensure reasonable valuations [9] Group 4: Mistake 4 - Forgetting Income & Cash Flow - Dividend-paying stocks provide steady cash flow and can help smooth returns during volatile markets, making them an essential part of a portfolio [10][11] - Sheng Siong Group Ltd is highlighted as a resilient dividend stock, with an interim dividend payout of S$0.032 per share for the first half of 2025, unchanged from the previous year [11] Group 5: Mistake 5 - Trying to Time the Market - Attempting to time the market for perfect entry or exit points is nearly impossible and can lead to missed gains [12][14] - A recommended strategy is Dollar-Cost Averaging (DCA), which allows investors to invest consistently over time, reducing the impact of volatility [13][14] Group 6: Conclusion - The article emphasizes the need for discipline during market highs, focusing on business fundamentals, maintaining diversification, and committing to a consistent investment strategy to build lasting wealth [15]